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Mr Hakin said his wife wanted to be at the funeral but had only awoken in hospital early Wednesday morning.

"(She said Thalia) was a little butterfly, that she was the light of her life," he said.

Three-month old baby Zachary Bryant was the first victim farewelled at a service on Tuesday, with his parents describing him as the most beautiful, loving, happy and perfect little baby.

Matthew Si, 33, Sydneysider Jess Mudie, 22, and an unnamed Japanese national, 25, also died in the attack.

It's understood Mr Si's family will be holding a private funeral.

Eighteen people remain in hospital, two of them listed as critical.

James Gargasoulas, 26, was charged with five counts of murder on Monday and is likely to face more charges as police continue investigating.

The accused man had been bailed just five days earlier.

The volunteer justice who permitted his release has stepped down from the roster and is understood to be deeply distressed.

Victoria on Monday announced bail justices would be dumped for serious matters and a new night court set up with on-call magistrates to deal with bail applications.

Victoria Police also defended its pursuit policy after criticism officers failed to stop the accused man despite numerous opportunities but the police union wants a change to allow more leeway to halt offenders in cars.

More than $1 million has been raised for victims through the official Bourke Street fund and other crowdfunding sites.